Over a decade to full recovery for housing market

It has been claimed that a full recovery for the property market in the UK could still be quite some way away, with some industry official claiming that it could be more than another decade before the property market makes a proper recovery. Read more

Tags: market, bust, housing market, supply, PricewaterhouseCoopers, firm, property prices, memories

Credit card holders could face 10,000% interest on one pence

Credit card holders who have one pence on the balance of their credit cards could face being charged up to 10,000 per cent interest.

US financial service providers Citibank, who own Egg the company who laid off 161,000 customers, announced it will increase the minimum interest charge for its 900,000 UK customers from 50p to £1 in May.

This means that a customer with one pence outstanding on their bill would be charged £1 – nearly 10,000 per cent interest.

Speaking to the Times, Sean Gardner of comparison firm Moneyexpert said: “Minimum interest charges are commonplace, although the details are typically hidden deep in the terms and conditions of your credit-card application.”

New figures from the Bank of England show that the average credit-card interest rate has increased to 17.67 per cent from 16.98 per cent a year ago.

Halifax, Bank of Scotland, Intelligent Finance and Egg, impose a minimum 50p charge for customers who pay interest on their bill.

Now Citigroup and Barclays charge a minimum of one pound.

Tags: bill, Intelligent Finance, May, scotland, Credit card, citibank, Sean Gardner, firm

Consumers “don’t take the time to read the small print”

When buying into financial products, such as critical illness cover and private medical insurance, “people tend to look at the top line and not the small print”, says financial experts.

Financial advisory firm Ashley Law said that those consumers who purchase products which are cheaper may find they have lesser benefits.

Jock Cassidy, director of Ashley Law, said: “If people don’t take the time to read the small print, and I doubt very much if they do because it’s not exactly the most interesting read, then they’ll go for the cheapest option.”

He added that when a person changes a provider of a financial product “it’s a guess on my part is that it’s [the decision] purely cost-driven”.

Meanwhile, David Elms, chief executive of Unbiased.co.uk, commented has said that record levels of business are being driven to independent financial advice through the company’s ‘Find an IFA’ service

As a result IFAs are converting the leads at a greater rate than before.

Tags: financial advice, David Elms, business, time, line

Insurers advised on risk models

With Hurricane Dean having caused havoc across the Caribbean in the past week, along with forest fires caused by the Mediterranean heatwave – not to mention the two disastrous floods in southern England last month and in June – this summer has been marked by an unusually high amount of natural disasters.

Insurance companies have been left to count the costs, with the two UK floods alone estimated to set them back £2.5 billion, according to figures from the Association of British Insurers (ABI).

Today, investments company F&C warned insurers that, with the seemingly higher incidences of natural disasters, they will need to adjust their risk models accordingly.

Associate director in the firm’s governance and sustainable investment team Vicki Bakhshi said: “The good news is that the sector is starting to wake up, and some risk models are now beginning to be amended. But the question is: which will change faster, the way the insurance sector operates or the weather?

“Despite the change in climate conditions, the risk models used by insurers are almost entirely based on historical patterns, not on climate science, and they do not take into account this upward shift in the risks,” she added.

“This means insurers might be underpricing risk. And some may also be underestimating the amount of capital they need to survive the kind of mega-catastrophes that are more likely to occur as a result of climate change.”

F&C also announced today that it has been conducting research into how insurance companies are responding to climate change, and will be publishing a report on it soon.

Tags: science, UK floods, Financial institutions, insurers, uk, report, higher incidences, firm

Protect yourself from flooding

Homeowners across much of England and Wales have endured flooding in recent days and Halifax Home Insurance is offering advice to those who live in high-risk areas.

The insurance firm says that around five million Brits live in flood-risk areas and these people are advised to take action to prevent their home and the items inside it being consumed by water.

Weather experts are predicting more rain in the coming days and Halifax is urging homeowners to follow its advice.

The firm says that homeowners should place sand bags outside doors and windows before a flood strikes.

It also advises that pipes should be protected in case appliances move during a flood, furniture should be moved upstairs and insurance policy information should be kept close to hand in case a claim needs to be made.

Halifax also has some advice for those who have already been affected by flooding.

They are being told to ensure gas, water and electricity supplies have been checked before being switched back on.

In addition, all affected appliances should be thoroughly checked by a qualified engineer, doors and windows should be opened and redecorating should not begin until the property is completely dried out.

It is possible to find out if you live in a flood-risk area by contacting the Environment Agency Floodline.

Tags: Wales, flood risk areas, Atmospheric sciences, flood, firm, homeowners, home, Halifax Home Insurance

Brits: Debt below £15k is not a concern

Millions of Britons are unconcerned by their growing levels of debt despite recent interest rate rises.

According to the Personal Credit Index survey from CreditExpert.co.uk, six million people would remain unconcerned about their debts if they stayed below £15,000.

That figure does not include mortgages and a further 1.4 million Britons would be happy to rack up £50,000 in debt before becoming concerned.

This is all adds up to a growing level of confidence among Brits, with Experian, the firm behind CreditExpert and the survey, saying that consumer confidence is currently at an annual high.

“The fact that so many Brits are happy with unsecured borrowing of at least £15,000 may seem shocking on first sight but the credit-comfy generation seems to have become anaesthetised to the real implications of mounting debt,” commented Jim Hodgkins, managing director of CreditExpert.co.uk.

“With the current rise in interest rates, many will find that debt they blithely ignored is in danger of spiralling out of control.”

In spite of our apparent apathy towards debt, the survey showed that it remains something of a social taboo.

One in ten of those questioned claimed that their debt problem is their most socially embarrassing life event, putting it well above getting a divorce or being caught using illegal drugs.

Tags: rack, firm, britons, real implications, life, sight, Personal Credit, debt

February increases saving mood

We all begin February with a good financial attitude, a desire to carry out sensible banking and a mood to save.

That is according to Legal & General which has published its Money Mood Survey for 2007.

In it, the firm tries to gauge the mood of the nation when it comes to saving and 2007 has proved to be the third year of growth.

According to Legal & General, 64 per cent of British adults were in the mood to save at the end of February.

This signals a rise of eight per cent compared to the same period in 2005. In addition, the mood to spend has fallen.

The study claims that 2007 saw the lowest mood to spend in February figures ever, with just 24 per cent of adults wanting to splash the cash.

“These latest figures show the Money Mood of the nation is firmly in save mode as we enter the Isa market this year,” remarked Claire Stacey, director of Legal & General.

“Money Mood also found that the percentage of households who said they have money to spend after paying bills and debt payments has not changed over the three years.

“That’s good news as it shows that the majority of households (58 per cent) are in a position to save rather than struggling to make ends meet,” she added.

This year’s Isa deadline is April 5th so if you are considering saving your money in a high-interest account you had better hurry.

Tags: firm, fallen.The study, sensible banking, ISA, money, growth, addition

£6.1bn cost of holiday cancellations

British holidaymakers lost a combined total of £6.1 billion last summer because they had to cancel their trips.

Figures released by More Than show that millions of people lost out financially because they did not have travel insurance.

People were forced to pay for travel and accommodation which they had booked despite never actually making it to their destination.

Travel insurance is a key element to any holiday and can at least help to prevent a bad situation from getting any worse.

More Than says that 26 per cent of travel claims it dealt with last year were for cancellation of holidays, something the firm believes is positive news.

“It’s encouraging that holidaymakers are catching on to the importance of travel insurance, but many still don’t realise that by purchasing their policies late, they miss out on valuable cancellation cover,” commented Keira Clarke, head of travel insurance at More Than.

“We encourage travellers to arrange their insurance at the same time as they book their break, to ensure they’ll be covered if anything goes wrong before the trip.”

According to More Than, the average travel insurance claim for cancellation of a holiday stood at around £856 last year.

Tags: situation, Travellers, cancellation, accommodation, total, something, firm, travel insurance.People

Space travel insurance

Commercial space travel may soon become a reality for some, with Richard Branson reportedly two years away from offering out-of-this-world flights.

If that is to become a reality than potential space tourists need to begin thinking about space travel insurance and one firm is already looking into it.

Bupa says that it is prepared to go where no travel insurance firm has gone before and offer cover to the next generation of travellers for their space trips.

“We provide insurance cover to people in 190 countries so it wouldn’t be a giant leap to add outer space to that list,” said Nick Potter, head of Bupa Travel.

“We are looking into space tourism as a real market for the next generation of travellers, especially as Russian cosmonauts have already taken tourists up into space.”

Richard Branson’s Virgin Galactic project is already picking up speed and the business tycoon hopes to perform test flights as early as this year.

With that in mind, Bupa says that it wants to provide cover for travellers but will need to carry out a full investigation into the dangers involved.

“Obviously we have to take into account various issues, such as the effect such a journey would have on the human body, although clarity will come in this new area of travel within the next decade,” added Mr Potter.

If you are planning an earth holiday make sure you get travel insurance so that you can relax and enjoy yourself with peace of mind.

Tags: firm, world flights, market, Spaceport America, insurance cover

Young adults spending parents’ money

The current generation of young adults still rely on their parents for financial handouts, according to research.

Scottish Widows says that many people have become so bad at banking and managing their finances that poor old mum and dad are having to spend their savings on helping out the kids.

The firm claims that ten million ‘adult children’ have used money from their parents’ savings, with 39 per cent of parents spending cash which they were saving for themselves.

Most parents give a total of £12,300 to their children as either a loan or a gift, meaning the UK’s parents are losing a total of £55 billion to their kids.

“Our research shows that parental responsibility no longer ends when your children reach adulthood but lasts for many years after that,” said Anne Young from Scottish Widows.

“Parents may be shocked to learn that their savings could be sapped by about £12,000 after their children leave home. We recommend they try to prepare for the possibility of this happening by creating their own Savings Sap fund.”

The money is generally put to good use, with 29 per cent of ‘adult children’ spending it as a deposit towards a mortgage for a new house.

A further 23 per cent spend it on buying a new car, 15 per cent on buying furniture and 14 per cent on clearing debts.

Tags: adulthood, adult children, good use, Gerontology, new house.A, firm, Scottish Widows."Parents, scottish widows

Musical instruments can cause mayhem

As Valentine’s Day approaches (February 14th) the country’s romantic souls are being offered a few words of advice.

Allianz Cornhill Musical Insurance (ACMI) says that this time of year can often lead to accidents involving musical instruments as boyfriends try to impress their beau by serenading them.

According to the firm, many claims are lodged each year regarding damage or accidents involving a musical instrument and they have decided to disclose a few.

Among the most humorous was a claimant whose cello spikes got caught in clothing and led to him falling onto his instrument and breaking it.

Many claims are made regarding young brothers getting carried away in a bit of rough and tumble, only to destroy their prized musical instruments.

Finally, ACMI says it has even received a claim after a wasp flew down someone’s shirt, leading to a fit of panic and a smashed instrument.

“Some of our policyholders have come up with some ingenious ways to damage their instruments so we have become quite expert in providing risk management advice,” said John Feaver from ACMI.

“The advice in this case is quite simple: please don’t try climbing a ladder while playing a guitar or violin – it could seriously damage your health and your instrument.”

If you are considering taking out insurance for your instrument, it may be worth checking your current home insurance policy to see if it is already covered.

Tags: health, clothing, allianz, Manufacturers, finance, advice, firm

Housing market may be cooling

There are very early signs that the UK housing market may be slowing down.

That is according to Nationwide Building Society, which says house price growth in January was the lowest it has been for eight months.

According to the firm, prices increased by just 0.3 per cent in January, a significant drop on the 1.2 per cent increase seen in December.

“House prices increased by just 0.3 per cent in January, the smallest monthly rise since May last year, which pulled the annual rate of house price growth back into single digits,” said Fionnuala Earley from Nationwide.

“Prices increased at an annual rate of 9.3 per cent in January, down from 10.5 per cent last month.”

The building society has also predicted that house prices will remain firm despite the recent rise in interest rates and the possibility of further rises in the year ahead.

“2007 started off with a bang as the Bank of England raised interest rates for the third time in six months. Only time will tell how much the surprise decision will affect sentiment in the housing market,” added Ms Earley.

The average price of a house in the UK currently stands at £173,225, down from the £173,746 price in December.

Tags: firm, economics, price, significant drop, house, Fionnuala Earley

January worst month for burglary

A robbery takes place in Britain every 35 seconds during January, with figures showing it to be easily the worst month for crime.

According to Halifax Home Insurance, we are 26 per cent more likely to have our homes broken into during the first month of the year when compared with the annual average.

It is estimated that around 76,000 homes will be broken into during January, costing a collective £170 million.

Halifax is trying to get the message across that it is vital to take out insurance, while the firm is also attempting to help homeowners prevent crime in the first place.

“We tend to see a rise in burglaries during January as burglars know that it is the time when our homes are packed with lots of new and expensive items, ranging from electrical goods to jewellery,” said Vicky Emmott from Halifax Home Insurance.

“We must remember that thieves are opportunists, and will strike during the day or night if they feel a property has inadequate security and the timing is right.”

Official crime statistics show that a huge 40 per cent of burglaries take place during daylight hours (06:00 – 18:00), highlighting the fact that thieves are willing to strike at any time of day.

Homeowners are being urged to remain vigilant throughout the day and night in order to avoid becoming a victim of burglary.

“The fact so many burglaries take place during daylight hours shows the importance of always remaining vigilant,” added Ms Emmott.

According to Halifax, Nottingham, London and Leeds are the worst areas for theft, while Colchester, Bath and Shrewsbury are the safest.

Tags: day, order, firm, london, halifax, worst areas, theft

Hybrid travel, credit card

Barclaycard has teamed up with the people behind Transport for London’s Oyster Card to bring a new era of payment to the UK.

Cubic Corporation, the firm that developed the Oyster Card, has struck a deal with Barclays in London to develop a hybrid card.

It will be useable both as an Oyster Card, allowing travel on the capital city’s transport network, and as a credit card.

The credit card element will work in exactly the same way as it does at present, as will the Oyster Card functions, but low value payments will now be revolutionised.

Holders of the new card will be able to make payments of £10 or under by simply waving the card in front of a receiver.

“Oyster has been a great success making journeys across London, cheaper, easier and quicker, but we want to make Oyster even more convenient,” said London Mayor Ken Livingstone.

“This new deal will mean that from next year people can buy low cost items and take advantage of Oyster fares on the same card, reducing the need to carry cash.”

A £10 limit has been put on the ‘wave and pay’ function for security reasons and the card, which will be tested in London in early 2007, also contains standard chip and pin technology.

Tags: Oyster Card functions, British people, way, firm, capital city transport, new era, OnePulse, barclays

Record breaking cash withdrawals

Data from Link shows that cash withdrawals over the Christmas period were not affected by gloomy predictions about consumer spending.

Many analysts had anticipated a quiet festive period on the high streets but, according to Link’s figures, more cash was withdrawn than ever before.

The firm operates the UK’s cash machine network and found that a record number of withdrawals (152,929,048) were made in December.

The amount of money withdrawn was 7.3 per cent higher than the same period in 2005, with the average consumer withdrawing around £64 each visit.

“This was a record year for seasonal cash machine transactions with figures reaching new heights this Christmas,” said Graham Mott, head of planning and development at Link.

“Despite pessimistic predictions about consumer spending, it appears that UK consumers began their Christmas shopping and socialising towards the end of November this year.

“As is tradition, the last Friday before Christmas was the busiest day recorded this year despite the fact that there were still two remaining shopping days before Christmas. It appears that people were keen to get all their shopping out of the way and enjoy the festivities,” he added.

Tags: High Street, festive period, quiet festive period, firm, consumer spending.Many analysts, finance, Christmas period, cent